A sudden and sharp discontinuity in health or financial bene-fits for individuals with slightly different income. In certain public and medical assistance programs, an additional dollar of income can mean a total loss of benefits. For example, in Medicaid, families just below the income eligibility standard receive fully subsidized coverage while families with only slightly more income and just above eligibility standards receive no benefits. Substantial incentives for families to restrict their incomes in order to remain eligible may result. Spend down provisions are used to compensate for notches. A notch may also occur when, without change in eligibility, cost-sharing requirements increase suddenly with a small change in income.
A depression on a surface, usually on a bone, but sometimes on an organ.
Small indentation, as on a bone (e.g., mandibular notch, the depression in the middle of the lower jawbone).
A deep indentation or narrow gap in the edge of a structure.